'CAR GUY' HIRED TO FIX AUTONATION

Chairman H. Wayne Huizenga said he wanted a "car guy" to run AutoNation and that's what he got Friday -- a senior executive who knows how to build, sell and even fix cars.

The Fort Lauderdale company's new chief executive officer, Mercedes-Benz North America Chief Executive Michael Jackson, arrives at AutoNation carrying one of the industry's most impressive resumes.

After starting as a mechanic at a dealership in New Jersey close to three decades ago, Jackson joined Mercedes-Benz in 1990 as a senior marketing manager.

There, industry analysts said, he played a major role in refashioning Mercedes' image from stuffy to chic.

"I think the experience with Mercedes-Benz absolutely gives me the skills I need to take AutoNation to the next level," said Jackson, who was promoted to the chief executive post at Mercedes-Benz last year.

"I know what it takes to sell one car at a time. I also know what it takes to lead a large organization. I understand both sides of the equation."

Jackson, 50, said his efforts to convert Mercedes from negotiated sales to one-price selling will serve him well at AutoNation, which is attempting a similar transition in its network of 400-plus auto franchises in 24 states. So will his efforts to create a low-pressure environment at dealerships to forge customer relationships, he said.

"The retail principles are exactly the same," Jackson said. "The execution has to be different because what works at Mercedes-Benz may not necessarily work at AutoNation. But the principles do not change."

Huizenga said Jackson's commitment to those principles was one reason he was hired.

"He is a believer in the concept. He understands that the industry needs change. He believes in the model," Huizenga said. "That's a big thing."

Huizenga said he will work with Jackson on strategic issues such as Internet initiatives and building the company's brand, but it will be Jackson's job to run the company.

Under Berrard, AutoNation -- then known as Republic Industries -- grew from a $50 million garbage company to a $20 billion coast-to-coast automobile dealer chain in three years.

But AutoNation also posted costly stumbles. The used-car superstores failed to replicate the success of Huizenga and Berrard's other well-known enterprise, Blockbuster Video. AutoNation's car rental agencies, such as National Car Rental and Alamo Rent-A-Car, faltered, too.

Wall Street has punished the company for its shortcomings. The company's stock has slumped from more than $40 a share in January 1997 to $12.06, where it closed Friday, up 31 cents.

In June, Berrard said he would step down as co-CEO, a title he shared with Huizenga, who is also relinquishing his co-CEO duties but will serve as chairman.

Attempts to reach Berrard were unsuccessful on Friday.

Jackson got his start in the auto industry when he got a job sweeping floors and fixing cars at a Cherry Hill, N.J., dealership.

Over the next 18 years, he rose through the ranks of the dealership and the Mercedes national dealer council. At one time he was a partner in a Bethesda, Md.-based company that owned dealerships.

He joined the Mercedes-Benz North America senior team at a time when the U.S. operations of the German automaker were struggling.

Rival BMW clobbered Mercedes, whose models appealed mostly to 50-year-olds, during the 1980s by cornering the yuppie market with its "ultimate driving machine."

Nine years later, Mercedes-Benz fortunes have changed dramatically. Mercedes-Benz will sell about 190,000 autos this year, more than three times the number of vehicles it did six years ago.

The formula: Combining hip advertising campaigns with a slew of new models, including sport-utility vehicles and more affordable cars.

"He was instrumental in repositioning Mercedes-Benz from a car that was high up on a pedestal but hard to obtain to one that is accessible," said Jim Evans, a Miami-based AutoNation Mercedes dealer.

AutoNation Ford dealer Bill Wallace said he is "ecstatic" with the choice of Jackson.

"The kind of changes he's been making at Mercedes-Benz are right in line with what we're trying to do with AutoNation," he said.

"He's been singing from the same song sheet, but from the manufacturing side."

"I think he is exactly the right guy. The tandem of Jackson and [AutoNation President Michael] Maroone says that they are getting down to business. They are not fading away. They are redoubling their effort," he said.